The Government has committed to delivering a new public body to strengthen the resilience of Great Britain’s energy system.
The Future System Operator (FSO), to be launched once legislation is passed and timelines have been discussed with key parties, will look at the Great Britain’s energy system as a whole, integrating existing networks with emerging technologies such as hydrogen.
The FSO will be founded on the existing capabilities of the Electricity System Operator (ESO), and, where appropriate, National Grid Gas (NGG). It will work with energy suppliers and networks to balance the UK’s electricity systems and ensure continued energy resilience and security of supply for households and businesses. It will also provide strategic oversight of the UK gas system by taking on longer-term planning in respect of gas (but not real-time operation, which will remain with NGG).
The announcement came ahead of the Energy Security Strategy, which sets out the approach to ensuring greater clean energy independence for Britain.
Energy Minister Greg Hands said: “Russia’s appalling aggression in Ukraine amid escalating global gas prices has shown the vital importance of strategic change to the UK energy system. We need to boost our energy resilience, reduce our dependence on expensive imports and slash emissions. The FSO will do just that.”
Jonathan Brearley, chief executive of Ofgem, said: “A fully independent system operator will help to transform Great Britain’s energy system and cut customers’ energy bills. Critically, the FSO will ensure that we will build a smart, efficient and flexible system that will mean that Britain moves to a secure low carbon and low-cost system.
“We look forward to working with National Grid, government and the wider industry to implement this important change in the way the energy system is managed.”
Fintan Slye, Executive Director, Electricity System Operator, said: “We warmly welcome today’s announcement that the ESO will be at the heart of the system operator of the future. Building on our track record and skills as a world leading system operator, together with industry and government and regulators we will help deliver an affordable, reliable and clean transition for all.
“The ESO will continue working closely with all parties involved in the coming weeks and months to enable a smooth and successful transition.”
John Pettigrew, CEO, National Grid: “National Grid has a critical role to play in the decarbonisation of the economy to reach net zero, whilst continuing to ensure security of supply at the lowest cost to consumers. We have been working closely with government, industry and the regulator to create a Future System Operator that enables long-term holistic thinking, drives progress towards net zero, and lays the foundations for the regulatory reform necessary to deliver a clean, fair and affordable energy transition. We will continue to work closely with all relevant parties to ensure a smooth transition, subject to Parliamentary approval and conclusion of the transaction process.:
